Financials

Full Year Financial Statements (Unaudited) For The Year Ended 31 December 2009

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Statement of Comprehensive Income

Balance Sheet

Review of Performance

Results and Financial Position

In FY09, the Group began to harvest some of its forests in Shandong province, together with the sales of orchid plantlets, mini-rose and ornamental plants. The revenue achieved was RMB 13.2 million which was lower than expected as the Group has not harvested in all the areas it had planned to due to poor market conditions.

For FY09, the Group registered a loss before tax of RMB 36.5 million compared to a loss of RMB 244 million in FY08. The change was mainly due to changes in fair value of biological assets and lower expenses.

Gain arising from changes in fair value

As at 31 December 2009, the carrying value of biological assets was RMB 581 million. The increase of about RMB 33 million in value over the last 12 months was mainly due to fair value gains.

Balance Sheet / Cashflow

Cash and bank balances as at 31 December 2009 increased to RMB 10.9 million from RMB 8.8 million as at 31 December 2008.

The Group's total liabilities, less cash, as a proportion of shareholders' equity as at 31 December 2009 was 72.8% ( 31 December 2008 : 60.6%).

Commentary

SGX has granted the Company a suspension of trading up to 19 March 2010 pursuant to Rule 1304 of the SGX-ST Listing Manual. The Company will put in its best efforts and will endeavour to resume trading of its shares by the given deadline.

The Company is also pleased to announce that the first instalment of USD2million to redeem the New Notes with Liberty Harbor Master Fund has been successfully completed, with further instalments to take place according to the quarterly amortisation until fully repaid on 30 September 2011.